As the world wants to get flying, the aviation sector faces a number of hurdles. AP
As the world wants to get flying, the aviation sector faces a number of hurdles. AP
As the world wants to get flying, the aviation sector faces a number of hurdles. AP
As the world wants to get flying, the aviation sector faces a number of hurdles. AP


A lack of pilots is stopping aviation from taking off


Hareb Thani Al Dhaheri
Hareb Thani Al Dhaheri
  • English
  • Arabic

May 27, 2022

Over the past two years, pilots have faced immense difficulty as the outbreak of Covid-19 led to planes and helicopters being grounded worldwide. Yet, with the tourism and critical infrastructure operations resuming around the globe in recent months, there has been an evident shortage of available pilots, particularly in the rotary flight workforce. That shortage can be addressed, but it will require increased training opportunities within dedicated, advanced flight schools.

Beyond the repercussions as a result of the coronavirus pandemic, a number of other explanations can attest to this shortage.

With the world deepening its interconnectivity, more industries are increasingly using helicopters, known for their versatility, and rotary flight to expand their capabilities. The problem is that as seasoned pilots begin to retire and an increasing number of positions open within rotary flight, the employment gap is growing wider. According to a November 2020 pilot job outlook by CAE, a Canadian civil aviation company, pilots are retiring at a rate of nearly 4 per cent per year. About 14,500 openings for airline and commercial pilots are projected each year, on average, over the next decade, according to the US Bureau of Labour Statistics’ Employment Projections. That means nearly 150,000 new airline pilots will be needed by 2030. The transition additionally creates a knowledge gap, as young pilots who remain in the industry will not yet have the same experience as retirees.

Large airlines and corporations also influence younger helicopter pilots to transition to fixed-wing positions, or standard airplanes, using enticing employment packages as incentive. According to the 2021 Pilot Outlook Report published by the Boeing Company in the US, by 2038 nearly four times as many helicopter pilots will be needed worldwide than are working right now. That’s a shortage of about 61,000 helicopter pilots.

A Japan Coast Guard helicopter conducting a search and rescue operation. Reuters
A Japan Coast Guard helicopter conducting a search and rescue operation. Reuters

Rather than perceive this shortage as a disadvantage, the increased need is a sign that the industry is moving forward and creating valuable change.

Each year, new industries incorporate rotary flight into their operations, as their use and benefits continue to expand and develop. Contrary to the limited military purposes that helicopters served when they were first invented – in the run-up to the Second World War in the late 1930s – they are now used in almost every industry, including medical, entertainment, utility and corporate. Helicopters are ideal for rescue missions and medical emergencies, but their advanced technology, three-dimensional capability and capacity to manage turbulent weather conditions make them the ultimate multi-purpose tool. The industry is expanding, creating the kind of growth opportunities from which young pilots and new employees will directly benefit.

Advancements in flight technology have led to a boom in the aviation industry. With more helicopters in operation than ever before, there is a greater need for fully trained, qualified pilots. This makes it the perfect time for those interested to take advantage of the opportunities that lie ahead. The aviation industry is key to businesses around the globe and to everyday life, meaning there will always be a need for pilots. A properly trained and qualified pilot is likely to have job security for the next 20 years or more. Because of the variety of fields that now ulitise helicopters, there are virtually no limits to what a pilot can do or where they can be located.

With increased job openings, it is imperative that new pilots are prepared to enter the workforce at the highest standards available. Training programmes must adapt to changing demands, such as requiring fewer student flight-time hours that do not necessarily contribute to a more skilled pilot. These actions can reduce costs for students and create a simpler, streamlined way to undertake pilot training and schooling.

Dedicated flight schools that offer unique, bespoke rotary-wing training courses will be crucial to building back the workforce. Flight schools, therefore, need to be investing in the latest training technology, including flight simulators, as well as expanding advanced courses within single and twin-engine helicopter training programmes. Offering specialised and diverse curriculums, including deep dives into skills such as night flying, resource management and safety, can provide students with a comprehensive education that will contribute to their interest in the field. A diverse curriculum would additionally elevate their ability to adapt to changing demands or industries within the scope of the rotary flight.

The aerospace industry is one that will inevitably go through profound change, seemingly the only constant in a field that depends on dynamic movement, cutting-edge technology and ever-increasing speeds. It is one that will continue to play a pivotal role in an increasingly globalised and interconnected world, and one that will require a strong, continuously growing workforce. It is up to the pilot-training community to build and retain that workforce through strong programmes that match the bold, fast-moving nature of this industry.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: June 02, 2023, 1:46 PM